Citigroup's Japan Misstep
May Bruise Bank's Global Image

The forced closure of Citigroup Inc.'s private-banking business in Japan likely will have little direct impact on its bottom line, but the bank's reputation is taking yet another hit.

The Japanese scandal is the latest transgression by the nation's biggest bank, which has spent the past year trying to clean up a sullied image. Although shares of Citigroup rose yesterday, the banking colossus has lost $8 billion, or 3%, of its market...